Valley National Bancorp (VLY) investor relations material

Executive summary

• Net income for Q1 2026 was $163.9 million ($0.28 per diluted share GAAP, $0.29 per share Non-GAAP), up from $106.1 million in Q1 2025, driven by higher net interest income, lower credit loss provisions, and increased non-interest income.

• Strategic focus on core deposit generation, relationship-based loan growth, and operational scalability, with investments in talent, technology, and AI to drive long-term value and enhance client experience.

• Core deposit growth and improved funding profile supported strong loan growth and reduced higher-cost deposits.

• Credit metrics and asset quality remained strong and stable.

• Total assets reached $64.5 billion, net loans $50.2 billion, deposits $52.9 billion, and shareholders' equity $7.8 billion at March 31, 2026.

Financial highlights

• Adjusted pre-provision net revenue rose to $253 million (Non-GAAP), with net interest income up $51.4 million year-over-year, and net interest margin at 3.17%, up 21 bps year-over-year.

• Non-interest income increased year-over-year, led by capital markets and deposit service charges, but fell sequentially due to lower capital markets activity.

• Efficiency ratio improved to 53.10% from 55.87% a year ago, with a target of 50% by end of 2026.

• Return on average assets was 1.02% (1.05% adjusted), and return on average tangible common equity was 11.9% (11.92% adjusted) for Q1 2026.

• Non-interest expense increased, mainly due to investments in talent, technology, and higher tax credit amortization.

Outlook and guidance

• Full-year 2026 deposit growth expected near the high end of the 5–7% range; loan growth projected between the midpoint and high end of the 4–6% range.

• Net interest income growth for 2026 anticipated at the high end of the 11–13% range, with net interest margin expected to exceed 3.30% by year-end.

• CET1 ratio projected to remain at the higher end of the 10.5–11% target range.

• Effective tax rate for 2026 projected at the low end of the 23–24% range.

• Allowance for credit losses as a percentage of loans is not expected to materially change, barring unforeseen credit deterioration.